Jun 02 2018

Rupee posted its best weekly gain since March 2017

 Weekly Synopsis

Date:- 02nd June 2018

Markets from 28th May 2018 to 01st June 2018:-

Indian Rupee:-

  • Indian rupee posted the best weekly gain against the dollar since March 2017, on the back of exporters’ dollar sales, likely corporate inflows and recent custodian inflows. On a weekly basis Rupee rose 1.06%. The rupee closes on Friday at 67.0550 against the previous weekly close of 67.7750 on May 25th, 2018 to a greenback. It trades in a weekly range between 68.00 to 67.0050 against the greenback.
  • India’s foreign exchange reserves fell for a sixth straight week to $412.82 billion as of the week ended May 25, against $415.05 billion in the previous week, the central bank said yesterday. Friday’s decrease was due to a fall in foreign currency assets to $387.60 billion from $389.82 billion in the previous week, according to data from the Reserve Bank of India.
  • India’s fiscal deficit in the year ended March 2018 came in at 3.53 percent of gross domestic product, in line with the revised estimates, government data showed on Thursday.
  • India’s economy grew 7.7 percent in the three months through March from a year earlier, government data showed on Thursday, faster than a revised 7.0 percent in the previous quarter.

Global Market:-

  • The U.S. dollar rose against its rivals on Friday following a blowout jobs report showing faster-than-expected wage growth, strengthening the Federal Reserve’s case to continue on its monetary policy tightening path. The US. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.19% to 94.13, after falling to session low of 93.85.
  • Private Payrolls grew by 223,000 for the May, a sharp uptick from the 163,000 in April, according to a report released Wednesday by ADP and Moody’s Analytics. That beat economists’ forecast of 189,000. The jobless rate fell to 3.8%, beating economists’ forecasts for an unchanged reading of 3.9%. Average hourly earnings grew 0.3% in May, topping expectations for 0.2% rise.
  • The rate of growth in the economy’s manufacturing sector picked up in May, according to a report released on Friday. The Institute of Supply Management said its manufacturing purchasing managers’ index rose to 58.7 in May, from 57.3 the previous month.
  • US. economic growth slowed slightly more than initially thought in the first quarter. Gross domestic product increased at a 2.2 percent annual rate, the Commerce Department said on Wednesday in its second estimate of first-quarter GDP, instead of the previously reported 2.3 percent pace.
  • Inflation in the euro zone accelerated in May, according to a flash estimate released on Thursday. The bloc’s statistics agency Eurostat said its consumer price index rose to 1.9% year-on-year in May, up from 1.2% in April and above expectations for a reading of 1.6%.
  • Activity in the UK manufacturing sector unexpectedly accelerated last month, according to a closely watched business survey released on Friday. Research firm IHS Markit said its manufacturing purchasing managers’ index rose to 54.4 in May, compared to forecasts for a reading of 53.5.
  • US. stocks were higher after the close on Friday, as gains in the technology, basic materials and industrial sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average  gained 0.90%, while the S&P 500 index climbed 1.08%, and the NASDAQ Composite index gained 1.51%.
  • European markets finished broadly higher on Friday with shares in France leading the region. The CAC 40 is up 1.24% while Germany’s DAX is up 0.95% and London’s FTSE 100 is up 0.31%.

Local Market:-

  • Indian shares ended lower on Friday, weighed down by losses in financials stocks such as HDFC Bank Ltd, while gains in auto stocks including Maruti Suzuki Ltd and Bajaj Auto Ltd capped losses.
  • The broader NSE index closed 0.37 percent lower at 10,696.20 while the benchmark BSE index was down 0.27 percent at 35,227.26. However, both the indexes ended the week 0.9 percent higher.
  • HDFC Bank, the top drag on the indexes, lost 1.4 percent. Maruti Suzuki rose 3.2 percent while Bajaj Auto ended 5.3 percent higher.